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DREWRY: “RATES RISE FURTHER IN FEBRUARY”

The Drewry Multipurpose Time Charter Index increased to $10,920 per day in January, representing a rise of 3.3% compared to the 0.9% rise seen in the previous month. Rates were stronger than expected over January and as such Drewry’s Index is up 68% since January 2021.

“It also means that we have revised our ideas for 1Q22 marginally upward and are forecasting a further rise in February of around 2.6% to $11,200 per day.”

January’s index was largely supported by a firm short-sea market, albeit rates here were steady rather than increasing, coupled with the continued rise in container rates and supply inefficiencies pushing charter rates for open MPV ever higher.

The onset of Chinese New Year did nothing to calm the container sector and this kept MPV charters on the rise, especially for long haul / heavylift capable vessels. Port congestion in both the US and Asia, coupled with increasing opportunities for renewables cargo, especially offshore wind, has kept the fleet busy.

“Our expectation is that while there might be a slight hiatus at the start of the month, these longer-term problems are not changing anytime soon, and rates will continue to edge higher over the month.”

Read the full article here: https://breakbulk.news/drewry-rates-rise-further-in-february/

By Breakbulk